If you're planning to embark on your entrepreneurial journey, or have already started, it's crucial to ensure that you’ve registered your business properly, starting with the vital step of obtaining an Australian Business Number (ABN).
An ABN can be a bit of a mystery for those new to the business world. But fear not, we've got your back! We've compiled a list of essential things you need to know about ABNs so you can start operating your business quicker!
1. Do I need an ABN?
If you're running or starting a business in Australia, you'll need an ABN to issue a valid invoice. Otherwise, it is just a hobby and not a business.
If you are a business with an annual turnover of more than $75,000, you will need an ABN if you're planning to register for Goods and Services Tax (GST). Additionally, if you're a contractor or a freelancer, you'll need an ABN to work legally in Australia.
2. What will I benefit from having an ABN?
There are several benefits of working under an ABN. First, it allows you to register for GST, which is necessary if your business has a turnover of $75,000 or more per year.
Second, it can help build your business's reputation and credibility, as it shows that your business is legitimate and registered with the Australian government. Your suppliers and customers can look up your business on the Australian Business Register (ABR) and confirm your details.
Finally, having an ABN can make it easier to access government grants and other business-related services.
3. What happens if I don't have an ABN?
If you're running a business without an ABN, you could be in trouble with the government. Not having an ABN means you can't sign up for GST or use certain business-related services. So it's pretty important to get yourself an ABN if you're doing business in Australia.
4. How do I apply for an ABN?
Once you've made sure you have all the necessary information for your application, there are two main options to choose from:
The Do-It-Yourself Option - the first option is to apply for the ABN yourself online, which can be done through the Business Registration Service.
The Easier Way Option - you can register quickly and easily through our user-friendly web application. Simply provide some basic information about your business, and our app will guide you through the rest of the registration process step-by-step.
Since you’re already here, we’re offering you a FREE ABN registration today! So if you're ready to take your business to the next level, register now and enjoy a FREE ABN Registration when you use the SUMB Coupon code SETUPMYABN* before you checkout.
*Register via the SUM[B] app to avail of this promo.
The We’ll Do-It-All-For-You Option - Leave your business setup worries behind by hiring an expert accountant with SUMB to do it all for you!
Book a session below and get all your registration, documents, and questions sorted out in one go!
5. How long does it take to register my business for ABN?
The process is typically straightforward, but the amount of time it takes to receive it may vary based on the accuracy of the information you provide. In some cases, it can usually be issued 5-10 minutes upon completing the application if all relevant information is submitted correctly.
However, if the ATO needs to manually verify certain parts of your application, the process takes anywhere from three to 14 days.
Get an ABN and enjoy all the benefits that come with it!
Obtaining an ABN is a crucial step for your business. By having one, you can access various tax benefits, build your business's reputation and credibility, and make it easier to access government grants and services.
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